June 30, 1998

    To:Community and Neighbourhood Services Committee

 From:Commissioner of Community Services

 Subject:Sale of Scattered Units Owned by the Ontario Housing Corporation in the City of Toronto

  Recommendations:

 It is recommended that:

 (1)Council oppose the sale of the scattered houses owned by the Ontario Housing Corporation in the City of Toronto;

 (2)Council's position be forwarded to the Minister of Municipal Affairs and Housing and to the Chairs of the Boards of the Ontario Housing Corporation (OHC) and the Metropolitan Toronto Housing Authority (MTHA); and

 (3)the appropriate City officials take the necessary steps to give effect thereto.

  Purpose of the Report:

  The Community and Neighbourhood Services Committee, at its meeting of June 18, 1998, asked the Commissioner of Community and Neighbourhood Services to submit a report outlining the Department's position on the sale of Metropolitan Toronto Housing Authority (MTHA) scattered units. This report has been prepared in response to that request.

 Background:

 In June of 1996, the Ontario Housing Corporation (OHC) launched a program to sell some of the scattered units which it owns. This was done as a cost saving measure and was part of the 1996 Business Plan of the Ministry of Municipal Affairs and Housing (MMAH). A small number of units were sold through 1996 until a moratorium was placed on the program at the end of 1996, pending direction from the provincial government on plans for public housing.

 In the fall of 1997, OHC began to consider the issue again and, at its meeting of January 23, 1998, the Board decided to proceed with its original plan to sell scattered units. Local Housing Authorities across the Province, of which MTHA is one, were directed to submit information to the OHC Board regarding any scattered unit that becomes vacant so that the Board can decide whether to sell it or not. The units must fall within the following parameters:

• single-detached, semi-detached or rowhouse unit
• located on an individually severed lot
• fewer than 5 bedrooms
• not modified to accommodate tenants with disabilities

 MTHA has identified 438 units which fall within these criteria, out of a total of approximately 500 scattered units which it manages. These units include ..351.. 3 bedroom houses and ..87.. 4 bedroom houses scattered throughout the City.

 It is important to note that all of these houses have subsidy dollars attached to them and are offered to low income families who pay a rent geared to income. This distinguishes these houses from the "property houses"owned by the City, where there are no subsidies attached and tenants pay a market rent.

 The Need for Subsidized Units:

 As noted, the scattered units to be considered for sale are 3 and 4 bedroom houses. According to waiting list data maintained by Toronto Social Housing Connections (formerly known as the Housing Registry), as of March 31, 1998 there were 9040 households on waiting lists for 3 bedroom units and 2068 households on waiting lists for 4 bedroom units. The majority of these households are waiting for units operated by MTHA. In all of 1997, MTHA only turned over (i.e. rented to new applicants) 553 three bedroom units and 66 four bedroom units.

 Any sale of units in this category will serve to make a long wait even longer for low income families seeking geared to income housing.

Proceeds of Sales:

 OHC will not receive any additional funds from the proceeds of unit sales. Any money generated is returned to the province's Consolidated Revenue Fund. In a September report to the Board, OHC indicated that it is not known if the sale of some units will affect the level of continuing subsidy from the federal government. In addition, there is no plan to transfer any subsidies from units that have been sold to other units in the social housing system. This approach is not consistent with the provincial government's stated commitment to maintain service levels through the reform of social housing prior to municipal devolution.

 Conclusions:

 The need and demand for affordable housing far exceeds the available supply. There is no longer any support from the senior levels of government to build new social housing and cities will increasingly be left to find housing solutions on their own. In the City of Toronto, the problem is a particularly serious one as vacancy rates for rental housing are low and there is almost no construction of private rental accommodation. Any attempt to sell units which are already publicly owned and which have subsidies attached to them seems counterproductive at this time. It is therefore recommended that the City of Toronto formally oppose the sale of the scattered OHC units within the City. The Chair of the OHC Board of Directors and the CEO of MTHA have been notified of the City's interest in this issue and have been invited to attend the July 16 meeting of the Committee.

  Interim Functional Lead for Housing

  Commissioner of Community and Neighbourhood Services.